A Paul Ludwinski buyout spans 6 years, has a cost of $836,667 and savings of $1,673,333. Ludwinski is 20 years of age at the time of the buyout; therefore, the buyout ratio is 1/3. With $2,510,000 in salary remaining, the cost is $836,667, and the savings are $1,673,333. Buyouts span twice the length of the remaining years and because there are 3 years remaining in the contract, the buyout length is 6 years. The buyout cap hit is displayed in the Cap Hit Calculations table below.
Cost Calculations
BUYOUT DATE | BASE SALARY REMAINING | S.BONUS REMAINING | YEARS REMAINING | BUYOUT LENGTH | AGE | BUYOUT RATIO | TOTAL COST | TOTAL SAVINGS | ANNUAL COST |
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Jun. 15, 2024 | $2,510,000 | $190,000 | 3 | 6 | 20 | 1/3 | $836,667 | $1,673,333 | $139,445 |
Cap Hit Calculations
SEASON | INITIAL BASE SALARY | INITIAL CAP HIT | SIGNING BONUS | BUYOUT COST | POST-BUYOUT EARNINGS | SAVINGS | CAP HIT (CHI) |
2024-25 | $800,000 | $900,000 | $95,000 | $139,445 | $234,445 | $660,555 | $239,445 |
2025-26 | $855,000 | $900,000 | $95,000 | $139,445 | $234,445 | $715,555 | $184,445 |
2026-27 | $855,000 | $900,000 | $0 | $139,445 | $139,445 | $715,555 | $184,445 |
2027-28 | $0 | $0 | $0 | $139,445 | $139,445 | -$139,445 | $139,445 |
2028-29 | $0 | $0 | $0 | $139,445 | $139,445 | -$139,445 | $139,445 |
2029-30 | $0 | $0 | $0 | $139,445 | $139,445 | -$139,445 | $139,445 |
TOTAL | $2,510,000 | $2,700,000 | $190,000 | $836,667 | $1,026,667 | $1,673,333 | $1,026,670 |